Embraer still in talks over ERJ-145 delivery schedule

Embraer is working "very extensively" to reach agreement on a new ERJ-145 delivery schedule with Grand China Express, but as yet a deal has not been brokered, the Brazilian airframer's president and CEO Frederico Fleury Curado said today.

Grand China, the regional subsidiary of Hainan Airlines, has 40 ERJ-145s on order with the manufacturer.

Three ERJ-145s due to go to the carrier in the third quarter were not delivered "due to a reduction in the growth of its fleet, and new delivery dates and quantities", Embraer said last month. At that time, Embraer executive vice-president airline market Mauro Kern said there could be "a possible extension of the delivery stream beyond 2010".

While Curado did not discuss this extension during an earnings conference call this morning, he said Embraer has "obviously slowed down the supply of parts and the procurement of supplies" to its Chinese joint venture Harbin Embraer, which produces the ERJ-145, until it sorts out the new production rate.

In terms of inventory, he says, the company has "one aircraft finished and one semi-finished".

A total six aircraft have been delivered from the line this year, including one to the defence/government sector.